The vast amount of capital currently sitting on the sidelines of the U.S. real estate market in search of the right deal at the right time and at the right price raises the possibility that it could put a price floor under distressed sales, an analysis by Colliers suggests.
"Investors are sitting on more uninvested capital than ever before," wrote research director for capital markets Aaron Jodka. "With so much money chasing these deals, someone is likely to bite."
Some $270.6 billion is ready to be deployed, according to data attributed to Preqin. That includes $100 billion allocated to opportunistic strategies – "the first time any single target allocation has crossed that threshold," Jodka noted. Value-add and debt strategies make up the balance, putting investors in a good position to capitalize on opportunities that present themselves. Cash buyers are especially well positioned to benefit.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.